Energy shares led the gains
U.S. stocks closed off session highs on Tuesday, 26 June 2018 though still in positive territory as equity benchmarks attempted to recover some of the sharp losses from the previous session. Modest moves on Wall Street reflect cautious sentiment among traders, as uncertainty over trade policy, which triggered Monday's selloff, remains.
The Dow Jones Industrial Average rose 30.31 points, or 0.1%, to 24,283.11. The S&P 500 index gained 5.99 points to 2,723.06, a gain of 0.2%. The Nasdaq Composite Index added 29.62 points to 7,561.63, a move of 0.4%.
Six of the 11 primary S&P 500 sectors closed in positive territory, although the moves were mostly muted. Energy shares led the gains, thanks to a jump oil prices above $70 a barrel.
The June selloff in global risk assets, which was sparked by a fresh round of global trade friction, continued Tuesday in most Asian markets but European stocks mostly advanced and U.S. benchmark stock indexes edged higher. Global trade friction, however, has had a subdued impact in supporting haven gold so far. That leaves the metal almost exclusively tethered to dollar moves that are tracking higher U.S. interest rates.
Meanwhile, U.S. economic data showed that the U.S. consumer confidence index revealed a slid to 126.4 in June, from a revised 128.8 in May, but the data continues to show that American as still optimistic about the domestic economy.
The ICE U.S. Dollar Index which reflects the dollar's strength against a half-dozen rivals, was up 0.5% at 94.714 and about 2.8% higher for 2018 to date. Higher rates and a stronger dollar are headwinds for commodities that don't offer a yield and a strengthening buck tends to weigh on assets priced in the currency, including gold, making them more expensive for purchasers using other monetary units.
Late Monday comments from President Trump's top trade adviser Peter Navarro, who said the White House is not planning to restrict foreign investment as part of its trade actions against China or any other country, continued to be analyzed on Tuesday in the absence of any new developments in the ongoing U.S.-China trade feud.
Shares of General Electric jumped 7.8% and were on track for their biggest one-day pop since April 2015. The gain came after the industrial conglomerate said it plans to spin off its health-care business and unload its ownership in oil-services company
Bullion prices ended lower at Comex on Tuesday, 26 June 2018. Gold prices finished at their lowest level in more than six months on Tuesday, with the precious metal under pressure from gains in the U.S. stock market and a stronger dollar.
August gold fell $9, or 0.7%, to settle at $1,259.90 an ounce after trading as low as $1,256.40. The settlement was the lowest for a most-active contract since 15 Dec. 2017. September silver fell 0.5% to $16.331 an ounce.
Oil futures surged on Tuesday, 26 June 2018 with the U.S. benchmark settling above $70 for the first time since May, buoyed by news that the U.S. is pushing for countries to cut Iran oil imports to zero by November, and uncertainty over Libyan crude exports. Doubts over OPEC's ability to boost production quickly enough to prevent a shortfall in global supplies also contributed to oil's rise.
August West Texas Intermediate crude, the U.S. benchmark, rose $2.45, or 3.6%, to ended at $70.53 a barrel on the New York Mercantile Exchange. August Brent crude, the global benchmark, rose $1.58, or 2.1%, to end at $76.31 a barrel on ICE Futures Europe, for the highest finish in nearly two weeks.
On Wednesday, investors will receive the Durable Goods Orders report for May, the advance readings for May Wholesale Inventories and International Trade in Goods, the Pending Home Sales report for May, and the weekly MBA Mortgage Applications Index.
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